Felt will work in the sizzix. I have the original red one and the big kick and do felt. In theory the cricut cuts felt too and I have seen some things online but I have never tried it. I am still trying to master fabric with the heatnbond on the back in the cricut. It looks like it works for larger more simple shapes. Mostly what I do is cut what I want from white cardstock and then use that as a tracer template to trace on my felt.

I have heard of using the drawing pens in the cricut to draw on the felt and then cut out.